HMRC to use AI from British tech firm to spot fraud and tax return errors

HM Revenue and Customs (HMRC) has announced a £175 million, 10-year deal with British tech firm Quantexa to integrate AI-powered fraud detection into the UK's tax system. The technology is designed to help the department identify hidden networks of fraudulent activity and fix unintentional errors in tax returns more efficiently. The move comes amid rising public dissatisfaction with HMRC's performance and a significant increase in complaints regarding response times.

Quantexa's CEO, Vishal Marria, emphasized that the AI is intended to 'support human decision-making, not replace it,' ensuring that all automated outcomes remain transparent and explainable. The system will combine HMRC's internal data with external sources to create a more comprehensive view of taxpayer behavior. As governments worldwide turn to AI to modernize public services, the HMRC-Quantexa partnership represents a major bet on using data analytics to improve fiscal integrity and citizen services.